- Bittensor surges 32% after Grayscale files to convert TAO Trust into an ETP.
- Technical indicators and rising derivatives volume suggest sustained bullish momentum toward $500.
- Retail traders take profits, but institutional inflows keep TAO’s rally intact.
Bittensor — TAO , recently set the crypto market ablaze with a 32% surge in one day. The rally followed Grayscale’s move to file a Form 10 with the U.S. Securities and Exchange Commission to convert its Bittensor Trust into an exchange-traded product. This development sparked excitement among investors, who see it as a signal of growing institutional confidence. Now, all eyes are on whether TAO can sustain momentum toward the much-anticipated $500 level.
Grayscale Sparks Institutional FOMO
Institutional interest toward Bittensor has intensified over the past week. Grayscale’s plan to launch a TAO exchange-traded product could unlock a flood of institutional capital. CEO Michael Sonnenshein emphasized that the move represents a step toward accessibility and stronger regulatory alignment for large investors. This anticipation has already fueled a powerful price breakout. TAO broke out of its long-term consolidation area where it was trapped between descending resistance and horizontal support. The breakout now shows that buyers are in control of the market causing price action to have a new phase of strength.
As of now, analysts are focused on three short-term targets for TAO , $443, $489 and $500. But, confirming that a trend up is changing will require a close above the key level of resistance at $403. This band of resistance has continuously rejected preceding rallies up to this key development portending which way there is next. The sentiment in the wider derivatives market remains strongly bullish. Perpetual Futures data showed inflows climbing to $250 million dollars within 24 hours. This spike signals that dealers are opening more long positions on expectation of rising values.
Retail Traders Take Profits as Bulls Hold the Line
The case for a bullish scenario is bolstered by momentum indicators , too. The Moving Average Convergence Divergence (MACD) went positive with 567.77. At the same time Chaikin Money Flow (CMF) remained elevated at 0.67, indicating there was strong buy pressure present. Though these technicals suggest that TAO could maintain its upward trend if buyers manage to remain above the breakout area.
However, while there is increasing enthusiasm, some retail traders are choosing to lock in profits after the rapid bullish impetus. On chain data indicated there were at least $7 million worth of sales over a 48 hour period. There were $5.6 million in sales at the beginning of the week, followed by another $1.4 million in the way of withdrawals.
Many analysts believe this selling in the short term is profit taking rather than indicative of a bearish turn. Capital inflows continue to be counter weighed by outflows, indicating that buyers are still present. Analysts believe that if TAO can maintain closes over the $403 level, the price will move continually upward toward the target of $500.
